Law:

Section:

INCOME TAX ORDINANCE, 2001 (XLIX OF 2001)---Miscellaneous application - Seeking grant of stay against the recovery of impugned tax demand - Withdrawal of amounts from the accounts of the taxpayer maintained in bank ignoring directions of the Tribunal contained in the order sheet dated 29.10.2020 - Appeal pending in Tribunal - Coercive measures adopted by the Department for the recovery of impugned tax demand - Challenge to - FACTS By this single order, we intend to dispose of above titled Miscellaneous Applications seeking grant of stay against the recovery of impugned tax demand that has been filed at the instance of the applicant/taxpayer. ARGUMENTS When the applications came up for hearing, the learned counsel apprised that the department had forcefully withdrawn the amounts from the accounts of the taxpayer maintained in Allied Bank by ignoring the directions of the Tribunal contained in the Order Sheet dated 29-10-2020 duly noted by the D.R. The learned counsel for the applicant/taxpayer has further apprised the Court that appeal of the taxpayer are pending adjudication before this Tribunal but in the meantime the Department has started taking coercive measure for recovery of the impugned tax demand. On other hand, the learned D.R. has regretfully submitted that the directions of the Tribunal in the aforementioned Order Sheet could not be conveyed to the concerned Officer due to oversight and such misfortunate of withdrawal of the amounts from the bank happened for which he sought pardon from this court and handed over and remitted the original pay orders to the taxpayer. DECISION (A.) Taxpayer should not be forced to pay a demand created by Revenue Authority unless the order creating such demand has undergone scrutiny of at least one independent forum. (B.) No coercive measures are to be adopted for the recovery of disputed tax liability till decision by an independent forum - Stay granted. Cases Referred to: Sun-Rise Bottling Company (Pvt) Ltd. v. Federation of Pakistan (2006 PTD 535); Karachi Shipyard and Engineering Works Ltd. v. Additional Collector, Customs Excise and Sales Tax (Adjudication-III), Government of Pakistan, Karachi (2006 PTD 2207) and…

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